“The opportunity to own Riverpoint Center was appealing on many levels. It sits on 17 acres in Lincoln Park within the City of Chicago and has surface parking that services the grocery anchored center,” Dan Guglielmone, Federal Realty Investment Trust’s executive vice president, chief financial officer & treasurer, told Commercial Property Executive. “With below-market rents in place now, we have the ability to grow value over time and add additional density surrounded by outstanding demographics.”

Riverpoint Center is currently 97 percent occupied and is anchored by Jewel-Osco, Marshalls and Old Navy. The property boasts demographics that enhance Federal Realty’s already sector-leading position, with 545,759 people and average household incomes of $104,696 within a 3-mile radius.

“The property is situated on one of the largest major retail corridors in Chicago, in Lincoln Park at the intersection of West Fullerton and North Clybourn, with strong demographics and high barriers to entry,” said Guglielmone.

According to Guglielmone, an opportunity like this does not come often.

“The acquisition of Riverpoint Center fits very well within Federal Realty’s long standing acquisition strategy to acquire a large piece of land in a dense urban neighborhood with superior demographics (550,000 population and $105,000 average household incomes in a 3-mile radius) and high barriers to entry,” Guglielmone added. “Through our decentralized structure, we were able to identify the opportunity, approach ownership and acquire Riverpoint at an attractive value off-market.”

Federal Realty expects to increase the value of the property over the ensuing years.

“Over time we will look to take advantage of the under-market rents that are in place at Riverpoint, marking them to market, remerchandising when it makes sense. We will look to add additional density to the center over time and to add many of the place-making design features for which Federal Realty is known,” concluded Guglielmone.